Forint Has Biggest 2-Day Drop in 3 Weeks as Hungary Bonds Slump
The forint and Hungarian bonds weakened for the second day as slowing growth in Japan added to signs of a deepening global economic slowdown that may help push Hungary back into recession.
The currency depreciated 0.8 percent to 279.65 per euro by 4:11 p.m. in Budapest, bringing its decline in the past two days to 1 percent, the most since the two days through July 24. The government’s benchmark 10-year bonds slumped, lifting yields seven basis points, or 0.07 percentage point, to 7.436 percent.
Hungarian GDP data due tomorrow may show a second consecutive quarter of contraction, according to all seven analysts surveyed by Bloomberg. Japan’s gross domestic product advanced an annualized 1.4 percent in the three months through June, less than the median estimate of 2.3 percent in a Bloomberg News survey of economists and down from 5.5 percent the previous quarter, a Cabinet Office report showed in Tokyo today.
“Global sentiment worsened slightly which may be fed by the poorer-than-expected Japanese growth data,” Zoltan Arokszallasi, an analyst at Erste Group Bank AG, wrote in a research report today.
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